German investor morale falls as U.S.-China trade dispute escalates

The ZEW Indicator of Economic Sentiment for Germany records a decrease of 5.2 points in May 2019, and now stands at minus 2.1 points.

The indicator’s long-term average is 22.1 points.

Over the same period, the assessment of the economic situation in Germany has improved by 2.7 points, with the corresponding indicator climbing to a current reading of 8.2 points.

The development of production and exports in Germany as well as Eurostat’s most recent flash estimate of GDP growth in the euro area in the first quarter of 2019 give rise to the hope that the German economy, too, has grown more strongly than expected in the first quarter. ■